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PUCO OKs Columbia change
By Kristen Russo
Columbus
The Public Utilities Commission of Ohio has approved a retail-price adjustment for Columbia Gas of Ohio.
The adjustment of $1.88 per thousand cubic feet is effective April 1 through March 31, 2012.
The current retail-price adjustment, which runs through March 31, is $1.93 per thousand cubic feet.
PUCO regulates public utilities for the state.
PUCO spokesman Matt Butler said the retail-price adjustment is set by a standard service offer auction, and it reflects the cost for the winning bidder to deliver the natural gas to the utility’s service area.
The utility then delivers the gas to its customers, he said.
PUCO must approve the auction results for the price to be valid.
“The auction worked as intended,” said Columbia Gas of Ohio spokesman Dave Rau.
“There were a lot of market participants. It went smoothly, and I’m glad we have a lower price.”
Butler said a decrease in the retail-price adjustment doesn’t necessarily translate to a decrease in customers’ monthly gas bills.
To calculate the gas price, the retail-price adjustment is added to the price of natural gas on the New York Mercantile Exchange at the end of each month, Butler said.
Rau said the gas price is then added to the utility’s service fees and the cost of delivery to the customer.
“Columbia Gas of Ohio doesn’t make a cent off the price of the gas itself, but the price of gas is the largest portion of a customer’s bill,” Rau said.
To protect the supplier’s contract negotiations with pipeline companies, PUCO will not release the name of the winning natural-gas supplier for 30 days.